CIM Dividend Type Payments

Chimera Investment Corporation dividend

Although CIM has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Chimera Investment Corporation to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 10:40 AM ET):

Chimera Investment Corporation (CIM)
Bid Ask Last Change Volume P/E Market Cap
13.89 13.93 13.91 +0.04 110K - 1.1B

CIM Dividend-Like Income Using Covered Calls

With CIM at 13.91, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 0.42 0.1
5% 0.70 0.2
10% 1.39 0.4

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On CIM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 14.00 0.50 46 1.1 0.07 (0.5%)
Jul 18 14.00 0.20 18 1.1 0.07 (0.5%)
5% Yield On CIM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 14.00 0.50 46 1.1 0.07 (0.5%)
Jul 18 14.00 0.20 18 1.1 0.07 (0.5%)
10% Yield On CIM Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 15 14.00 0.50 46 1.1 0.07 (0.5%)
Jul 18 14.00 0.20 18 1.1 0.07 (0.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Jul 18 Expiration     Top 5 High Yield
1.NVDA dividend 6.GLD dividend   1.COGT dividend
2.SLV dividend 7.AAPL dividend   2.CIFR dividend
3.SPY dividend 8.TLT dividend   3.STZ dividend
4.IWM dividend 9.FXI dividend   4.ENVX dividend
5.TSLA dividend 10.QQQ dividend   5.RUN dividend

Want more examples? CIG Dividend | CINF Dividend